The franchise model continues to validate with a wide range of different types of businesses in different industries. Three totally different businesses in completely different markets exemplify the amazing effectiveness of franchising done right. Orange Theory, a new fitness brand on the market just surpassed 1,000 units in a five year time frame, Creamistry, an ice cream model exceeded 300 units in only three years and Restoration 1 was able hit 200 units in six years. What makes the franchise model so appealing to business owners is the concept of scale and leverage. 

How it Works:
Franchising is a marketing mechanism that allows a business to leverage independent ownership through franchise investors. Franchisees put their own money into the business and work in the location they own in most cases. This vested owner operator mentality gives the brand a dedication and commitment you only get from someone who has their own skin in the game. Franchisees operate the business with the same intensity and focus that the original entrepreneur would have in their own market. The customer gets a better, more consistent experience that only comes from someone with passion and fear with everything riding on the success of the business. Franchisees, unlike W-2’d managers, watch Yelp reviews like a hawk and respond diligently to keep their customer base coming back for more.

What about new customer acquisition, do you have a way to help franchisees get business and customers coming to their location?  Some businesses rest on their laurels and customers come just because the place has always been there, a franchisee needs a solid franchise marketing system to generate awareness and drive revenues. Generally, the market will tell you when it’s time to franchise your business model. People will ask you about opening a location in their area, investing in the business or flat out if they can buy a franchise, that is when you know it’s time to look into the franchise model seriously.

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